What changed
On 7 August 2026, the Ministry of Finance announced that Small Business Relief had been extended to eligible tax periods ending on or before 31 December 2029. The previous final date was 31 December 2026. This moves the end of the relief window by three years; it does not guarantee three extra eligible periods for every business. MoF extension announcement, original Ministerial Decision 73 of 2023, Article 2.
Who may qualify
An eligible resident person can elect for relief only when revenue does not exceed AED 3 million in the relevant tax period and in each previous tax period. The threshold applies to each period separately; revenue is not added together across years. Other conditions and exclusions apply, including exclusions for Qualifying Free Zone Persons and constituent companies of multinational groups covered by the relevant rules. A previous threshold breach can prevent a later election even if revenue subsequently falls. Ministerial Decision 73 of 2023, Articles 2–3.
Registration, returns and records still matter
An eligible person that elects for relief is treated as having no taxable income for that period. It remains within the corporate tax regime. Registration, a simplified tax return and supporting records are still required. The election is made through the return for each eligible period; it is not a single election covering the entire extension. File within the applicable deadline and check the position before claiming. FTA filing and eligibility reminder, 3 August 2026.
Update your forecast
Check your tax-period end dates, revenue for the current and previous periods, and the remaining eligibility conditions. Model the position if revenue exceeds the threshold. The extended end date does not undo a threshold breach or remove continuing compliance work. Keep the assumptions and supporting records available for review before submitting the return.
